CO NATP Chapter News. President s Corner

Transcription

1 August 26, 2014 Volume 1, Issue 1 CO NATP Chapter News Special Interest Articles: Special Interest Articles: President s Corner New Sales Tax Rates 2014 Conference Individual Highlights: A War Story 2 CO-NATP Conference Topics 3 New Sales Tax Rates 4 CO-NATP Board of Directors 7 Committees 8 President s Corner The National Conference was an amazing experience. There are excellent instructors, some VIPs from the IRS, and always sharp minds eager to learn. I sometimes wonder how anybody starts out in the tax preparation business. I began when it was relatively simple, and I have added layers of complexity as they developed. With the computer age, the opportunities to complicate have grown exponentially. As amazing as the National Conference was, we still have our own Colorado one to come. Don t miss it!! Your Board has put many hours of planning into it so it will be a polished, very worthwhile occasion. We are bringing in another new top notch instructor to join one we had last year with expertise in areas that are critical to everyone s practice. The Board has had 2 resignations in the last couple of months. Deb Towers found it necessary to resign, and she was replaced with Stan Lebahn as an appointment from the Board. Deb had been a Director for several years, always forthcoming with energy and commitment, which we will miss. Just now, we have received a resignation message from Pat Nelson who has been our Secretary for a very long time, a job at which she excelled. Pat has some health issues that require her undivided attention, but she leaves a huge gap on the Board and in our hearts. Watch for news about her replacement. Best wishes to you and your family, Louisa

2 CO-NATP Chapter News Page 2 of 8 A War Story Your Board suggests that we all have some fascinating clients, and it would be interesting to share some of our stories. Foreign Residential Rental I have a couple of clients residing in foreign countries, United Kingdom and Switzerland. In previous years their returns have been somewhat routine with foreign earned income being excluded from taxes on Form 2555, and foreign tax credit calculated for income exceeding the exclusion amount. The UK client purchased a flat in London where he lived with his Japanese born wife who worked for a Japan bank. While working on his doctorate at Oxford, my client worked as an independent contractor for World Bank. His foreign self-employment is excludable from income tax, but not SE tax. In 2013 he completed his doctorate, and began working for World Bank as an employee. Since his new assignment placed him in Jakarta, Indonesia, he rented out his flat in London. As a result, in 2013 he had self-employment income, wages and rental income. NATP Research was contacted to confirm that the foreign rental property would be treated the same as if it were a domestic property. Surprisingly, the answer was yes, except depreciation is taken only if the foreign country has a system that allows for depreciation. I assume this is related to the allowed or allowable rules for depreciation. My next question was, does UK have a depreciation system for rental properties. NATP Research response was we don t know. Through Google I was able to access some UK websites that provided insight related to depreciation. UK has what they call Capital Allowances for most items that we would depreciate in the U.S. However, their law specifically excludes buildings from Capital Allowances. As a result my conclusion is depreciation is not allowed in UK. My education in this area may not be complete because my Swiss client recently informed me that they have purchased a rental property in Switzerland that was placed in service in January of Ardel Brink

3 CO-NATP Chapter News Page 3 of Conference Topics Colorado Fall Conference, October 20 and 21 at the Sheraton in Lakewood. Monday 10/20/14 8:00AM - 9:40AM - Affordable Care Act - Alice Orzechowski 2 hrs. 10:00AM - 11:40AM - Debt Forgiveness - Marilyn Meredith 2 hrs. 1:00PM - 2:40PM It s Taxable/Deductible Part 1 Alice Orzechowski & Marilyn Meredith 2 hrs. 3:00PM 4:40PM - Education - Alice Orzechowski 2 hrs. Tuesday 10/21/14 8:00AM 9:40AM S-Corps - Marilyn Meredith 2 hrs. 10:00AM 11:40AM Form Estates - Alice Orzechowski 2 hrs. 1:00PM - 2:40PM It s Taxable/Deductible Part 1 Alice Orzechowski & Marilyn Meredith 2 hrs. 3:00PM 4:40PM Ethics - Alice Orzechowski 2 hrs. Registration Fees Early Registration: Member: $250 Nonmember: $275 Last Day Offered: 9/30/2014 Standard Registration: Member: $275 Nonmember: $300 Cancellation Fee: $50 Deadline: 10/13/2014

4 CO-NATP Chapter News Page 4 of 8 July 1, 2014 Sales Tax Rate Changes Posted: June 18, 2014 Updated: June 26, 2014 The department's Revenue Online service will contain these changes on July 1, NOTE: Beginning July 1, 2014, collection and remittance for the Local Marketing District (LMD) tax has changed from quarterly to matching the filing status of the state sales tax account. The due date is the 20th day of the month following the end of the filing period. STATE COLLECTED City Tax Castle Pines (Castle Pine Canyons PIF) Estes Park (Sales Tax Increase) Keenesburg (Sales Tax Increase) RATE EXEMPT* USE SERVICE FEE 2.75% A-C-D 2.75% 3 1/3% 1.375% 7 A-C-D 1.375% 5% None 2% 3 1/3% 3% A 3% 3 1/3% Special District Tax Baptist Road RTA Portion of City of Monument Gunnison Valley RTA Gunnison County limits except the towns of Marble, Ohio, Pitkin and Somerset Gunnison Valley RTA Within Gunnison city limits Pikes Peak RTA El Paso County limits except the towns of Calhan, Fountain, Monument and Palmer Lake EXEMPT* RATE 1% A-B-C-D-E- G- H-K-L-M-N- O 0.6% A-B-C-D-E- 0.35% A-B-C-D-E- 1% A-B-C-D-E- USE SERVICE FEE 1% NONE NONE NONE NONE NONE 1% NONE

5 CO-NATP Chapter News Page 5 of 8 Roaring Fork RTA Basalt and New Castle city limits Roaring Fork RTA Carbondale and Glenwood Springs city limits Roaring Fork RTA Aspen and Snowmass Village city limits, unincorporated Pitkin County Roaring Fork RTA Areas of unincorporated Eagle County in the El Jebel area and outside the city limits of Carbondale South Platte Valley RTA Sterling city limits Aspen Park Metropolitan District In a portion of Conifer in Jefferson County Bachelor Gulch Metropolitan District In a portion of Eagle County Multi-Jurisdictional Housing Authority Summit County limits 0.8% A-B-C-D-E- 1% A-B-C-D-E- 0.4% A-B-C-D-E- 0.6% A-B-C-D-E- 0.1% A-B-C-D-E- 0.5% A-B-C-D-E- 3% A-B-C-D-E % A-B-C-D-E- 0.8% NONE 1% NONE 0.4% NONE 0.6% NONE 0.1% NONE NONE NONE NONE NONE 0.125% 3 1/3% Other Fee Changes State (Increase Service Fee and New Exemptions) Regional Transportation District (Increased Service Fee and New Exemptions) Scientific & Cultural Facilities District (Increased Service Fee and New Exemptions) EXEMPT* RATE 2.9% A-B-C-D-E- 1% A-B-C-D- E-G-H-K- L-M- 0.1% A-B-C-D- E-G-H-K- L-M- USE SERVICE FEE 2.9% 3 1/3% 1% 3 1/3% 0.1% 3 1/3% SELF COLLECTED EXEMPT* USE SERVICE FEE RATE Gypsum 3% W W 3 1/3%

6 CO-NATP Chapter News Page 6 of 8 (Sales Tax Decrease Effective June 1, 2014) Montrose (Sales Tax Increase) 3.3% W W 1 1/3% * EXEMPTIONS AND OTHER NOTES *A = Food for home consumption *B = Machinery and machine tools (as defined on form DR 1191) *C = Gas, electricity, etc., for residential use *D = Occasional sales by charitable organizations *E = Farm equipment *G = Food sold through vending machines *H = Low-emitting vehicles (more than 10,000 pounds) *K = Renewable energy components *L = Beetle wood products *M = School-related sales *N = Biogas production system components *O = Property used in space flight *W = Contact the city directly *7 = Sales tax is reduced if purchases are made from certain area subject to a Public Improvement Fee (PIF) and/or Retail Sales Fee Colorado Updates If you are not currently getting the Colorado Tax Professionals updates via from the Taxpayer Service Division, you may sign up at tpspunblicinfo@spike.dor.state.so.us and put Subscribe in the subject line. Quick Reference Guides Stock your library and help your Chapter all at the same time. When you order your quick reference guides from TheTaxBook (code 445) or Quickfinder (code Q680) a donation will be made to your Chapter.

7 SECRETARY TREASURER PRESIDENT VICE PRES. CO-NATP Chapter News Page 7 of 8 CO-NATP BOARD OF DIRECTORS Board and Officer Listing Form Chapter: Colorado Date 1/16/2014 CHAPTER OFFICERS: Name: Louisa Young Attorney Address: PO Box Boulder, CO Phone: H: Cell: Louisa.Young@Colorado.EDU Officer Term Begins: 1/1/14 Officer Term Ends: 12/31/14 Board Term Begins1/1/13 Board Term Ends: 12/31/15 Name: Patricia A Nelson E.A. Address: W. Milan Place Denver, CO Phone: F ax: Cell: pattaxx@hotmail.com Officer Term Begins 1/1/14 Officer Term Ends: 12/31/14 Board Term Begins: 1/1/14 Board Term Ends: 12/31/16 Name: Rosemary Pike E.A. Address:10535 W 85 th Pl Arvada, CO Phone: Cell: piketaxservice@comcast.net Officer Term Begins: 1/1/14 Term Ends: 12/31/14 Board Term Begins: 1/1/14 Board Term Ends 12/31/16 Name: Dortha Sanderson E.A. Address: 321 Countryside Dr. Pueblo West, CO Phone: Fax: Cell: dsander185@aol.com Officer Term Begins: 1/1/14 Officer Term Ends: 12/31/14 Board Term Begins:1/1/14 Board Term Ends:12/31/16 ADDITIONAL BOARD OF DIRECTORS: Name: Stan LeBahn Address: 3225 Honeyburyl Dr Colorado Springs, CO Phone: Fax: lebahns@comcast.net Term Begins: 7/11/14 Term Ends: 12/31/15 Name: Orla Ross PTP Address: 5914 S Fairfield St. Littleton, CO Phone: Fax: H roscokarns@msn.com Term Begins: 1/1/12 Term Ends: 12/31/14 Name: Hugh A Gallagher, E.A.. Address: 4814 W. 93 rd Ave Westminster, CO Phone: Fax: hugh@westminstertax.com Officer Term Begins: 1/1/13 Officer Term Ends: Term Begins: 1/1/13 Term Ends: Name: Hassan Alief E.A. Address: PO Box 926 Wheat Ridge, CO Phone: Fax: Cell: mhalief@msn.com Board Term Begins: 1/1/13 Board Term Ends: 12/31/15 Name: Hatley, Gale J. E.A., CSA. Address: B Cottonwood Dr. Parker, CO Phone: Fax: gale@towerstax.com Term Begins: 1/1/12 Term Ends: 12/31/14 Name: Daniel R Broadbooks, E.A. Address: PO Box 7085 Pueblo West, CO Phone: Fax: dbaccounting@att.net Term Begins: 1/1/14 Term Ends: 12/31/16 Name: Malcolm Hovde Address: 55 Taylor Ct. Castle Rock, CO Cell: Fax: mchovde@comcast.net Term Begins: 1/1/14 Term Ends: 12/31/15 Name: Ardel Brink, E.A. Address: 8185 S Steele St. Centennial CO Phone: Fax: ardelea@msn.com Term Begins: 1/1/12 Term Ends 12/31/14

8 CO-NATP Chapter News Page 8 of 8 COMMITTEE CHAIRMEN: Bylaws Committee: Louisa, Hassan and Ardel Convention Committee: Rosemary, Gale Education Committee: Dan, Rosemary Government Relations Committee: Dot, Orla Membership/Public Relations Committee: Louisa, Hugh, Malcolm and Bob Beecher Newsletter Committee: Gale, Hugh and Malcolm Nominating Committee: Rosemary and Ardel Professional Standards Committee: Louisa To become involved in your CO-NATP chapter contact one of your State Directors. We will be happy to answer your questions. If you are interested in becoming a Director please contact someone on the Nominating Committee listed above. If you have anything you would like to see included in the news letter please let us know. Editors choice of quote for this issue